A spokesperson for Environment Minister John Gormley said this morning that a new liaison officer is to be appointed between the department and the residents and farmers in the area.
The move is seen as crucial to try and resolve the continued row over the world heritage site project.
Residents and farmers in the Clonmacnoise area say that the 'buffer zone' surrounding the monastic site is too large and will restrict farming practice in the area.
Those who attended a meeting with the Taoiseach on the issue last week claim Brian Cowen had criticised the Department of Environment's handling of the project.
Minister Gormley says his department is committed to further consultation with farmers and residents near the Clonmacnoise monastic site in Co Offaly.
Despite claims by locals that the project is now 'dead in the water', Mr Gormley said Taoiseach Brian Cowen had already stated he was in favour of World Heritage status for Clonmacnoise.
He said he believed that the way forward now for the consultants on the project was to engage in further consultation.
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SIC: RTÉ